Geopolitical Tensions Drive Oil Prices Higher
Fading optimism for a US-Iran deal contributed to a cautious market mood and a surge in oil prices. WTI crude futures reached a weekly high amid deepening uncertainty over global energy supply disruptions, with analysts noting persistent upside risks. This dynamic weighed on currencies like the Euro and Indian Rupee while supporting gains in European energy stocks.
US Dollar Strengthens on Safe-Haven Flows
The US Dollar gained strength as heightened geopolitical tensions and market caution spurred safe-haven demand from investors. The dollar's rebound put pressure on other currencies, including the New Zealand Dollar, Swiss Franc, and Indian Rupee. This dynamic was further fueled by the sharp rally in crude oil, reinforcing the dollar's appeal in the current environment.
Australian Dollar Weakens After RBA Holds Rates
The Australian Dollar weakened against major currency peers after the Reserve Bank of Australia (RBA) kept its interest rate unchanged at 4.35%. While the central bank noted that inflation was cooling slightly faster than expected, it left the possibility of future rate hikes on the table to address remaining upside risks. The decision and subsequent commentary from the RBA governor prompted declines in the AUD.
Precious Metals See Mixed Price Action
Precious metals experienced mixed trading activity amid the broader market moves. Gold prices saw an increase in the Indian market, reflecting regional buying interest. In contrast, silver prices corrected lower, retreating from a recent seven-week high after facing technical resistance.
Sources